Forecast Of The Day: Discover’s Card Balance Outstanding
Discover (NYSE:DFS) Card Balance Outstanding – the dollar value of the company’s credit cards loans outstanding – declined from $73 billion in 2019 to about $70 billion in 2021. Trefis expects the metric to rise to $71 billion in 2022 and to about $74 billion in 2023.
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The lower balances through 2020 and 2021 were due to weaker spending earlier in the pandemic and the potential impact of the U.S. stimulus which drove higher levels of pay downs.
With balances slated to rise and interest rates also trending higher, we expect Discover’s net interest revenues to improve. We value DFS stock at about $144 per share, 31% ahead of the current market price.
See Our Complete Analysis For Discover
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